Journalist
Posted:
- This significant progress was made possible by ZetaChain.
- SUSHI pumped 17% on the news of BTC integration.
Original Bitcoin [BTC] trading would be enabled for the first time in decentralized finance (DeFi), which would be a huge development for the sector.
🍣 Sushi is expanding to @zetablockchainthe first EVM-compatible L1 blockchain that connects everything!
🪙Native $BTC Exchange
🚀 First Testnet implementation
⭐️ v2 & v3 AMM on Mainnet
🔗 Cross-chain Switch across 30 chainsStay tuned for more updates!
Blog: https://t.co/fYAtPChbuP pic.twitter.com/yg8N6fFPVb
— Sushi.com (@SushiSwap) November 16, 2023
Bitcoin trading in DeFi is getting easier
The milestone transition would be facilitated by the popular decentralized exchange (DEX) SushiSwap [SUSHI]. If all goes according to plan, DeFi traders will be able to exchange native BTC with other networks without any wrapping or bridging.
As is known, most DEXs are built on top of Ethereum [ETH] chain, making them incompatible with BTC. This has historically limited Bitcoin holders’ participation in the ever-expanding DeFi world.
To bridge this gap, the ERC-20 compliant Wrapped Bitcoin was developed [WBTC] tokens have been in use. You can think of a wrapped token as a tokenized version of an original token, but with cross-chain compatibility.
However, the conversion to a WBTC requires extra efforts from a BTC user, which causes delays and affects the overall trading experience.
That’s why SushiSwap’s new plug-and-play feature could prove to be a game changer. Bitcoin’s vast untapped liquidity could become available to the innovative DeFi world, which regularly spawns new use cases.
ZetaChain makes it possible
It was worth noting that the launch of SushiSwap on the layer-1 (L1) network, ZetaChain, fueled this development. ZetaChain’s unique token standard ZRC-20 would enable trading of various assets in a unified blockchain environment.
SushiSwap also said it would launch a DEX on the Zetachain testnet in the first phase. After thorough testing and mainnet launch, native trading functionality would come into effect.
How many Worth 1,10,100 SUSHIs today?
SushiSwap to the top?
It goes without saying that this development could have far-reaching consequences for SushiSwap. At the time of writing, it ranked well below some of the other frontline DEXs in the ecosystem, AMBCrypto found from DeFiLlamas facts.
Source: DeFiLlama
Governance token SUSHI rose 17% to $1.2 on news of BTC integration, according CoinMarketCap. However, profit-taking by traders brought the asset back to $1.12 at the time of writing. On a weekly time frame, SUSHI rose by almost 20%.